Bart exchanges some real estate (basis of $800,000 and fair market value of $1 million) for other real estate owned by Roland (basis of $1.2 million and fair market value of $900,000) and $100,000 in cash. The real estate involved is unimproved and is held by Bart and Roland, before and after the exchange, as an investment property.

a. What is Bart's realized gain on the exchange? Recognized gain?

b. What is Roland's realized loss? Recognized loss?

c. Support your results in (a) and (b) under the wherewithal to pay concept as applied to like-kind exchanges.